PRSRT STD US POSTAGE PA ID PERMIT 745 COLO SPGS CO
Vol. 8 No. 6
February 29, 2016
www.csrej.com
Mortgage rates may be headed for record low The industry has been concerned about higher mortgage rates in 2016, but so far, rates have been low. And they may even head into record-low territory soon, according to analysts. About two months ago, the Federal Reserve raised its funds rate for the first time in years. Since then, however, the 30-year fixed-rate mortgage has been dropping. “Mortgage rates are going down again, and it's good for borrowers, but is it really good for the housing market and the broader economy? The answer is no,” said Guy Cecala, CEO and publisher of Inside Mortgage Finance. Some analysts say rates could even fall into the 2 percent range. “It would help those on the low end but could hurt jumbo loan borrowers,” CNBC reports. “Banks, which generally hold these larger loans on their books, would not want to lend in that environment.” Banks would retreat back to where conforming government mortgages would be cheaper than private jumbo loans, Cecala says. What’s behind the drop in rates? Investors are flooding into the U.S. bond market, which is leading to the drop in mortgage rates, CNBC reports.
HBA hosts Breakfast with the Builders Bringing local builders and Realtors together at its annual event The Housing & Building Association of Colorado Springs held its annual Breakfast with the Builders on Wednesday, Feb. 10, at the Mortgage Solutions Financial Expo Center. For more than two decades the event has served as a platform for HBA builder members and licensed Realtors to come together to share new inventory and locations. An industry favorite, the event offers agents a wealth of information in one location, often enough to carry them through the year. The HBA believes this event is key to developing and growing builder-Realtor relationships, which is critical for maintaining a highfunctioning housing and building industry in Colorado Springs. As Grace Covington of Covington Homes explained, "Our relationship with the Realtor community is an integral part of our success as builders. We value the experience, expertise and knowledge that our local Realtors and the PPAR bring to our industry. The Breakfast with the Builders event offers a unique opportunity to strengthen these partnerships and we look forward to it every year." One of the HBA’s success factors as an Association is to encourage a positive environment for the local industry and community. With more than 400 people in attendance and 30 builders represented, this year’s event undoubtedly accomplished that goal.
(Mortgage rates follow loosely the 10-year Treasury bond yields.) “Investors are buying bonds as a safety play in a highly volatile and largely negative stock market,” CNBC reports. “Signs of weakness in the U.S. economy, in addition to trouble in overseas markets, pushed the yield on the 10-year Treasury to its lowest level since 2012, and mortgage rates followed south.” The lower mortgage rates do help home buyers lessen their monthly payments and also to qualify for larger loans – which could help provide a boost to the spring home-buying market. But a weaker economy, on the other hand, mixed with stock market losses and sluggish wage growth can also hurt the housing market. “Frankly, a healthier economy would be mortgage rates in the 5 percent range, but that's also assuming you could get 2 percent in your checking account,” Cecala told CNBC. © National Association of Realtors. Reprinted with permission.
Closing times lengthen yet again Over the past year, the average time to close on a loan has grown 10 days longer. In January 2015, the average time to close was 40 days, according to Ellie Mae’s report. See Closing Times | 3
HBa annual awards dinner
HBa Breakfast with the Builders
WCR Speed dating & Orientation
PaGE 2
PaGE 5
PaGE 7
Honest & Ethical Service from People You Know. 5333 North Union Blvd. Suite 100, Colorado Springs, CO 80918
HELPFUL TIP: Check the license status of your mortgage broker at the Colorado Division of Real Estate’s website. Regulated by the Colorado Division of Real Estate, Corp NMLS #3113.
Chad Denny
Branch Manager
Debbie Havens
Sales Manager
National News ........... Page Local News ............... Page On the Move ............. Page Local Expert ............. Page Around the Corner ...... Page
Mobile Issue (Beta)
The time to close on a mortgage loan is once again increasing. The average time in January climbed to 50 total days, up four days since the "Know Before You Owe" mortgage disclosure rules took effect in October, shows a new report released by Ellie Mae.
Sharon Ballinger
Sr. Loan Officer
Edward Duncan
Will Michaloski
Marianne Elep Turner
Loan Officer
Loan Officer
Loan Officer
3 4 9 10 11
(719) 331-2750 chad.denny@academy.cc
(719) 380-1778 debbie.havens@academy.cc
(719) 491-2500 sharon.ballinger@academy.cc
(719) 264-1968 edward.duncan@academy.cc
(719) 232-7553 will.michaloski@academy.cc
(719) 264-1952 marianne.elepturner@academy.cc
NMLS #665068 State Lic #100037389
NMLS #653845 State Lic #100018256
NMLS #347297 State Lic #100019804
NMLS # 1383947 State Lic #100500423
NMLS #1058945 State Lic #100044854
NMLS #231308 State Lic #100029888